How is the Trucking Shortage Hurting the US Economy?

The backbone of the economy is trucking. Almost 70% of goods moved in America are done with 18 wheelers. There is no current reliable substitution for the trucking industry, yet it is suffering as the demand for drivers can’t be met. To move 9.2 billion tons of freight annually requires nearly 3 million heavy duty Class 8 trucks and over 3 million trained drivers, and without it America cannot function.

Despite huge efforts to increase driver pay and incentives, the problem is only getting worse. The driver shortage — which we now estimate to be between 35,000 to 40,000 drivers — is getting more pervasive in the truckload sector,” ATA Chief Economist Bob Costello said. That’s up to 5,000 drivers more than previous estimates released by the ATA.” The employment rate for trucking is almost as low as the peak time of the recession. This shortage can cause shipping prices to increase because companies have to pay drivers more to get them to stay.

The high turnover rate has hurt trucking companies’ ability to meet customer service demands as well as meet the demands for products. At the same time, the industry is also increasing its standards of entry for new drivers. The government has a new carrier safety rating system, which rates both drivers and carriers on safety.

According to the Wall Street Journal: “Turnover rates for smaller fleets grew to 95% from 90% in the last quarter of 2014, “primarily due to the larger fleets attracting drivers away with higher pay, bonuses and better benefits,” the report said. Some 390 companies with an average of 27 vehicles declared bankruptcy in the first quarter of last year.”

As the trucking industry struggles to control cost and keep up with the demand, Comply365 has created tools to help alleviate some of the pains of time management and reduce expenses. If you are looking to attract new drivers and improve retention through better interaction, engagement and synergy through mobile applications then request a demo today.

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